Analysts, Options Bears Rip Lululemon Athletica Stock

Options volume is running at 25 times the intraday average

Digital Content Manager
Mar 22, 2024 at 10:32 AM
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Lululemon Athletica Inc (NASDAQ:LULU) stock was last seen down 14.5% at $409.20, despite the apparel retailer beating fourth-quarter earnings and revenue estimates. What's weighing on the shares instead is a disappointing annual revenue forecast, amid declining demand for its products.

The security attracted multiple price-target cuts in response, including one from Wells Fargo to $425 from $450. The 12-month consensus target price of $489.45 is a 20.8% premium to current levels, though, and 20 of the 26 analysts in coverage still rate Lululemon Athletica stock a "buy" or better.

LULU is trading at its lowest level since November, and firmly below the 120-day moving average. Shares are also on track for their worst single-day percentage loss since March 2020, while looking to snap a three-day win streak. So far this year, the security has shed 20.5%.

Options volume is already running at 25 times the intraday average, with 27,000 calls and 35,000 puts exchanged so far today. Most popular is the weekly 3/22 400-strike put, where positions are being opened. This indicated options traders expect more downside for LULU by today's close.



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